Buy AUD/USD Bullish Pennant

The AUD/USD pair on the M30 timeframe presents a potential buying opportunity due to a recent breakout from a well-defined bullish pennant pattern. This breakout suggests a continuation of the prior uptrend and a higher likelihood of further gains in the coming hours.

Key Points:

Buy Entry: Consider entering a long position (buying) above the broken resistance level of the pennant, ideally around 0.6630 after confirmation of the breakout. This offers an entry point close to the perceived shift in momentum.

Target Levels: Initial bullish targets lie at the following points, based on the pennant and recent price movement:
0.6694: This target is obtained by measuring the height of the flagpole (initial uptrend before the pennant) and adding that distance to the breakout price.
0.6734: This is a further extension of the upside target, based on roughly twice the height of the flagpole.

Stop-Loss: To manage risk, place a stop-loss order below the broken resistance line of the pennant, ideally around 0.6600. This helps limit potential losses if the price unexpectedly reverses and breaks back downwards.

Thank you.

Trade active:

RBA Holds Steady or Cuts Rates: If the RBA decides to hold interest rates steady or even cut them, it could weaken the USD relative to the AUD. This is because a lower interest rate in Australia makes holding AUD less attractive compared to other currencies, potentially leading to a decrease in its value. However, a rate cut could signal a weaker Australian economy, which could also put downward pressure on AUD.

Trade closed: stop reached